Asked about the specific products driving strong demand in China and how sales are managed (distributors vs. direct).

Management identified organoids/multi-channel systems, BTX electroporation, telemetry, and respiratory inhalation as key drivers in China. They clarified that most sales in China are conducted through distributors. “In terms of how it sold, much of our sales in China are sold through distributors.”

Sought clarification on the implied year-over-year revenue growth rates for the third and fourth quarters based on current guidance.

Management indicated mid-single-digit growth for Q3, with the midpoint of $21.8 million representing 6% year-over-year growth. Q4 growth is expected to be slightly lower due to a strong prior-year comparable. “Yes, mid single digits and probably slightly lower in Q4. Obviously we hope to overachieve. That's why we raised the guidance, Paul. but we obviously had a very strong quarter four last year. So the midpoint of the range that we provided is $21.8 million in revenue, which would be a 6% revenue growth over last year.”

Asked for the percentage of total revenue contributed by New Product Innovation (NPI) products.

Management stated that NPI products contributed 11% of total revenue in Q2, consistent with Q1, and significantly up from 3% in the prior year. “It was similar to quarter one, Bruce. It was 11% versus 3% last year.”

HBIO

Harvard Bioscience (HBIO) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Aug 11, 2026

Source: earnings call transcript

Executive summary

Harvard Bioscience Q2 FY26 — Double-Digit Revenue Growth and Raised Full-Year Outlook

Harvard Bioscience delivered strong Q2 FY26 results, driven by double-digit revenue growth in its CMT and preclinical portfolios and robust demand from CRO customers. The company raised its full-year revenue outlook, reflecting commercial momentum and strategic execution. While product mix shifts impacted gross margin, management remains confident in long-term expansion through NPI platforms and recurring revenue growth, supported by Project Viking cost savings.

Highlights

Revenue grew 11% year-over-year to $22.7 million, exceeding guidance.
Adjusted EBITDA increased 11% year-over-year to $1.7 million.
Full-year revenue growth guidance raised to 3-5% from 2-4%.
Recurring revenue increased to 55% of total revenue in H1, moving towards a 60% long-term target.
New Product Innovation (NPI) revenue contributed 11% of total revenue, up from 3% last year.

Concerns

Adjusted gross margin was 57%, slightly lower than anticipated due to higher CMT product sales and China sales, which carry lower relative gross margins.
Full-year adjusted gross margin guidance revised down by 100 basis points to 57-59% due to product mix dynamics.
Cash used in operations for H1 was $0.3 million, compared to $5.7 million generated in the prior year, driven by inventory builds and higher interest costs.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Revenue Growth	3% to 5% high materiality	FY26	High
Full-year 2026 Adjusted Gross Margin	57% to 59% high materiality	FY26	Medium
Full-year 2026 Adjusted EBITDA Growth	6% to 10% high materiality	FY26	High
Q3 2026 Revenue	$21 million and $22.6 million medium materiality	Q3 · FY26	High
Q3 2026 Adjusted Gross Margin	56% and 58% medium materiality	Q3 · FY26	High
Q3 2026 Adjusted EBITDA	$1.5 million and $2.5 million medium materiality	Q3 · FY26	High
Project Viking Cost Savings	$3M medium materiality	FY27	High
Project Viking Annual Cost Savings	$4M medium materiality	Annually thereafter	High
Long-term Recurring Revenue Target	60% low materiality	Long-term	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Americas Driven by strong telemetry growth at CRO customers. Academic funding environment beginning to improve, with stronger sales expected in H2.	$11.4 million	13%	—	—
Europe Declines in academic and government channels offset by growth across CRO, pharma, and distribution partners. Constant currency growth: 1.5%	$6.8 million	3%	—	—
APAC Primarily driven by strong sales of BTX electroporation and respiratory lines.	$4.6 million	24%	—	—
China Driven primarily by CRO demand and progress from the Made in China localization initiative. Expected strong regional tailwind from additional localized product lines.	$3.1 million	29%	—	—

Product announcements

Product	Type	Timeline	Details
Localized BTX line	launch	—
Additional localized product lines	roadmap	H2 FY26 for certifications, 2027 for growth

Deals & partnerships

Fisher Scientific Distribution agreement

The distribution agreement with Fisher Scientific continues to deliver strong commercial returns and broaden customer reach.

Risks & headwinds

Gross Margin Impact from Product Mix Q2 FY26 and FY26

Adjusted gross margin was 57%, slightly lower than anticipated; full-year adjusted gross margin guidance revised down by 100 basis points to 57-59% from 58-60%.

Mitigation:Strategic focus on higher margin NPI platforms and expanding recurring revenue; structural cost savings from Project Viking beginning in 2027.

Cash Flow from Operations H1 FY26

Cash used in operations for H1 FY26 was $0.3 million, compared to $5.7 million generated in YTD 2025.

Mitigation:Inventory builds to improve product lead times and support manufacturing pre-builds for Project Viking transitions; higher interest costs from debt deal.

Increased Operating Expenses (OPEX) Q2 FY26

OPEX increased by $1.2 million in Q2.

Mitigation:Due to restored salaries and merit, reflecting a normalized cost structure. Expected to see higher leverage and returns in Q4 and 2027 as revenue scales and operational discipline continues.

What to watch in Q3 FY26

Academic Market Recovery

H2 FY26

Current gradually improving

Target year-over-year growth in H2 FY26

Why it matters

Academic sales are a key segment, and recovery indicates broader market health and potential for increased revenue.

The economic market in the U.S. is gradually improving. And what we have done and continue to do is look at those pockets where funds have been released to actively and aggressively go after that. And we put our salespeople as well as, as you can imagine, our distributors as well, are into those accounts, and we believe we're well positioned for year-over-year growth there in the second half.

Find out whether HBIO delivers this. Inve re-checks your case every morning.

Q&A highlights

Inquired about the growth levels for the electroporation business group and the organoid/multi-channel systems (MEA) product.

Management confirmed that both electroporation and organoid/multi-channel systems businesses experienced strong, double-digit growth.

“It grew strong, double digits, and we're seeing the same in our year-to-date strong performance in our organoids or multi-channel systems products.”

asked by Paul Knight · answered by John Duke

2 min read 5 chapters

Detailed narrative

Strategic Execution and Operational Discipline

Harvard Bioscience's disciplined focus on sharpening strategy, commercial alignment, and operational discipline has driven strong Q2 performance. This includes optimizing the sales organization and distribution channels, as well as executing manufacturing footprint consolidation through Project Viking. These efforts have translated into meaningful top-line growth, a more differentiated product portfolio, and stronger market engagement from key customer segments.

Product Portfolio Strength and Innovation

The company observed double-digit growth within its telemetry and CMT businesses, highlighted by strong performance in AAA bioprocessing and electroporation products. New Product Innovation (NPI) revenue significantly increased its contribution to 11% of total revenue in Q2, up from 3% last year. This indicates successful product development and market adoption, with customers showing strong engagement across both preclinical and CMT platforms.

Geographic and Customer Expansion

Strong demand from CRO customers was a primary driver of revenue growth, alongside solid execution through the Fisher Scientific distribution agreement, which generated double-digit growth. Geographically, APAC revenue grew 24% year-over-year, with China revenue up 29% to $3.1 million, primarily driven by CRO demand and the Made in China Localization Initiative. The academic segment also showed improvement over the first quarter.

Gross Margin Dynamics and Future Outlook

Adjusted gross margin for Q2 was 57%, slightly lower than anticipated due to a product and geographic mix shift towards higher CMT product sales and strong China demand, both of which carry lower relative gross margins. Despite this, management remains confident in long-term gross margin expansion.

This will be driven by a strategic focus on higher-margin NPI platforms, expanding recurring revenue, and structural cost savings from Project Viking beginning in 2027.

Project Viking Progress and Cost Savings

The manufacturing footprint consolidation project, Project Viking, is progressing on track. Two product lines were successfully transitioned out of the Holliston facility in Q2, with two more planned for Q3. This initiative is expected to deliver $3 million in cost savings in 2027 and $4 million annually thereafter, contributing significantly to future profitability and operational efficiency.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.